SG Complains

Minister explains why bus fares cannot remain unchanged

According to Motoring AsiaOne:

Transport Minister Raymond Lim yesterday commented for the first time on the bus fare hike this month, urging Singaporeans not to politicise the issue.

Doing so would over time, cause the service standard to suffer, he said at a dialogue.

A resident of Thomson Division suggested that fares be reviewed every four years before the general election.

He was highlighting the latest bus fare hike of 1 to 2 cents on Oct 1, just a year after the last increase when fares of buses and trains were raised by 1 to 3 cents.

Replying, Mr Lim said if fares were frozen for four years, people tend to ask for it to be extended again.

Other countries’ experiences have shown that when governments succumb to such pressure, service standards would deteriorate.

The reason: bus companies, unable to afford new buses, will have a shrinking fleet, resulting in overcrowding.

As the situation worsens, people will complain to the government, which will feel compelled to raise fares.

‘But the people say: ‘How can you raise the fare if the buses are so crowded, so lousy the service?’

‘It goes one full circle,’ said the minister.

So while, politically, the freezing of fares would be a popular move, that would not be a responsible thing to do, he added.

The resident had also asked why public transport companies like SBS and SMRT are publicly listed, resulting in them looking out for the interests of their shareholders, not commuters.

Mr Lim said experience elsewhere shows that if government were to take over, costs will still rise eventually.

Fares then have to rise. But if commuters resist, fares have to subsidised and this subsidy has to be borne by taxpayers.

So, either the user or tax- payer pays, he noted.

The minister also defended the Public Transport Council (PTC), noting that its decision to disallow train fares to rise was ignored by people.

Arguing that fare charges was best left to the independent PTC, he said it was unfair to brand it pro-public transport operators.

‘They are doing a very difficult job, (it is) very easy to say these things but they’re already trying to take into account the public interest to ensure that at the end of the day, you have a public transport service that is good,’ he said.

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